Boerse Stuttgart Group has secured a DLT Trading and Settlement System licence, establishing the regulatory basis for its pan-European digital settlement platform, Seturion.
Granted by Germany’s Federal Financial Supervisory Authority (BaFin), following a licensing process conducted alongside the European Securities and Markets Authority (ESMA) and the European Central Bank, the licence makes Boerse Stuttgart Group the first European exchange group to receive authorisation under the EU’s DLT Pilot Regime.
The approval enables Seturion to operate as a regulated digital settlement platform connecting banks, brokers and trading venues across Europe, with the aim of addressing fragmentation in post-trade infrastructure.
Dr Matthias Voelkel, CEO of Boerse Stuttgart Group, said: “Receiving the first DLT TSS license for a European exchange group underscores our pioneering role for the digital capital market of the future. It is not only the basis for establishing Seturion as the pan-European digital settlement platform. It is also an important step for turning a unified European capital market into reality.”
Seturion supports public and private blockchains, alongside settlement using on-chain money and central bank money. According to Boerse Stuttgart Group, banks and brokers connecting to the platform could benefit from up to 90% lower costs, shorter settlement cycles and greater operational efficiency through direct peer-to-peer settlement.
Trading venues connecting to Seturion will also be able to offer trading in tokenised assets without requiring their own DLT licence.
Dr Lidia Kurt, CEO of Seturion, said: “The DLT TSS license of Boerse Stuttgart Group allows us to leverage the potential of blockchain technology for the next-generation post-trade infrastructure in Europe. Building Seturion as a digital settlement platform that is open to banks brokers, and trading venues across Europe, we contribute to an efficient capital market, in full alignment with European regulation.”
Seturion is designed as an open industry platform, with strategic partners including flatexDEGIRO, Nasdaq, Société Générale and SG-FORGE. The group plans to expand its network of participants as the platform scales across Europe.
